The proposed research addresses America's increasing demographic diversity and growing diversity in how to think about difference and inclusion-what I term "model of diversity." Models of diversity are collective understandings and practices of how ethnic and racial groups should relate to one another. The influence of these models on groups" experiences and relations can be powerful and often invisible. My literature review and preliminary findings suggest that in out increasingly diverse society, it will be important to understand groups' conceptions of difference and inclusion, how these conceptions diverge from one another, and their psychological effects. My specific aims thus include delineating models of diversity, understanding their functions for both minority and majority group members, and manipulating the models to examine their specific behavioral consequences. This research should shed light on the dilemma of whether it is better to emphasize or de-emphasize group differences in order to create successful diverse environments. It extends previous research by focusing not just n the processes but also on the content of intergroup perception and interaction. This research should have direct implications for how to improve intergroup perception and relations and psychological outcomes for minority groups, especially in educational and workplace setting. In order to address these questions from many angles, this research includes multiple workplace settings. In order to address these questions from many angles, this research includes multiple workplace settings. In order to address these questions from many angles, this research includes multiple methods (experimental, survey, and content analysis) and a demographically diverse group of participants (by ethnicity, race, age, and socioeconomic status). This triangulation of methods and diverse participant base promise a more comprehensive approach to the study of the function of diverse environments.